GSK beats expectations for Q1 revenue, profit
London: GSK on Wednesday beat expectations for its first-quarter revenue and profit, helped by sales of its blockbuster shingles vaccine Shingrix.
The London-listed drugmaker reported an adjusted profit of 37 pence per share on revenue of about 7 billion pounds ($8.70 billion). Analysts were expecting 33.2 pence per share on revenue of about 6.5 billion pounds, according to company-compiled consensus estimates.
The company's blockbuster shingles vaccine, Shingrix, generated 833 million pounds, ahead of than the GSK-compiled consensus of 829 million pounds.
GSK reaffirmed its guidance for 2023.
In February, GSK predicted sales growth would increase by 6 to 8 per cent and adjusted operating profit to increase by 10 to 12 per cent, at constant exchange rates in 2023, versus 2022.
On Wednesday, the company said it expected adjusted operating profit growth to be lower in the first half of the year, as costs increase to fuel expected drug launches, including its keenly, watched respiratory syncytial virus (RSV) vaccine, and higher in the second half.
GSK investors have been concerned about whether there is enough in the company's medicine cabinet to keep the momentum into the next decade, given the pending loss of patent protection of one of its key HIV compounds.
The company has announced a string of deals, including Bellus Health, Affinivax and Sierra Oncology, to plug that gap. GSK is also leaning in part on its vaccine for RSV, which leads to thousands of hospitalisations and deaths each year.
The company is a key player in the race that also includes Moderna and Pfizer to develop a safe and effective RSV vaccine, which, if approved, is expected to generate billions in sales.
Pfizer and GSK filed applications for U.S. regulatory approval late last year. An decision on GSK's application is expected by early May.
Read also: GSK Shingles vaccine Shingrix now in India
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